Sega Announces Massive Restructuring

Following the announcement of big financial losses, Sega announce a fresh wave of job cuts and game cancelations…

Earnings (and profits) for the year ending March 31 2012 will fall sharply.

This is due to several under performing titles.

Sega have plans to cancel games and streamline its operations, mainly in North America & Europe

Expecting net sales revenue to be ¥46,000 lower than they previously predicted

Net income will be ¥20 billion (£153m)

Loss specifically attributed to “the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe. It is essential to streamline organisations in the field of home videogame software in the US and European markets while shifting to a structure that corresponds to [this] change in environment, including strengthening development in the field of digital content.”

Several job losses on the way, making for “a smaller company positioned for sustained profitability.”

More focus on reliable, long-running IPs including Sonic The Hedgehog, Football Manager, Total War and Aliens

Predicting “extraordinary” losses of ¥7.1 billion (£54.3m), of which ¥4.9 billion (£37.5m) will be costs associated with its restructure